Melbourne IT signs $18 million contract with Indian outsourcer

Melbourne IT signs $18 million contract with Indian outsourcer

HCL Technologies set to move in against Accenture, IBM and CSC

ASX-listed services provider, Melbourne IT (ASX:MLB), has picked Indian outsourcer, HCL Technologies, to support its Web transformation project.

It will give Melbourne IT more streamlined cash flow processes and provide its call centre staff with a single view of its customer interactions.

Melbourne IT chief operating officer, Damian Walsh, said the decision came after its solutions vendor, Oracle, recommended 20 companies in February this year.

Melbourne IT then cut the list to four invited companies including HCL Technologies, Tech Mahindra, Infosys Technologies and Oakton.

“We couldn’t find any Australian systems integrators who’d done the exact modules we’re implementing and we didn’t want to take risks with somebody doing it for the first time,” he said. “Globally there are hundreds of companies who have done that so it’s not leading edge, but Australia is a much smaller marketplace.”

Walsh welcomed HCL’s statement that Melbourne IT was a beachhead client.

“I think they meant a beachhead in the communications industry sector more than the country as a whole,” Walsh said. “We’re very comfortable being an important customer to them.”

HCL Technologies vice president, Virender Aggarwal, said his company already had a strong presence in the local finance and banking markets. It roughly has 575 employees in Australia and about 800 staff in India servicing the Australian and New Zealand market.

“Our business in Australia is sizeable right now,” he said. “We’re using this as a beachhead for non-financial services companies, particularly telecommunications firms where we’re not that strong.”

Aggarwal said while multinational IT services providers operating in Australia such as Accenture, IBM and CSC were strong competitors, local firms lacked the scale and expertise to be a threat to HCL’s expansion.

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Tags IBMaccentureMelbourne ITOaktoncscHCL TechnologiesTech MahindraInfosys Technologies


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